The Securities Exchange Commission (SEC) was established as an independent agency (of the executive branch) by the Securities Exchange Act of 1934 to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” The SEC enforces federal securities laws and regulates securities. Major laws that govern the securities industry are: Securities Act of 1933, Securities Exchange Act of 1934, Trust Indenture Act of 1939, Investment Company Act of 1940, Investment Advisers Act of 1940, Securities Investor Protection Act of 1970, and SOX Act of 2002. “The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers/dealers, investment advisors, and mutual funds.”